Move to e-commerce taxation, cautious online businesses to widen tax net – Tax analyst

The Ghana Revenue Authority (GRA) is the tax arm of the government

GRA embarks on an aggressive revenue generation campaign

GRA targets GH¢2.7 billion in social media tax

GRA to pilot e-commerce, gaming and sports betting tax regime in April

Francis Timore Boi, a tax analyst, praised the Ghana Revenue Authority for its decision to start taxing sports betting, gaming and e-commerce businesses operating in the country.

From April this year, the Authority plans to pilot the tax regime which aims to generate substantial revenue.

Reacting to the development in an interview with Citi Business News, the tax analyst believes that the implementation of the ruling will become effective if thorough due diligence is carried out in monitoring companies’ activities online.

“If you provide electronic transactions, you are expected to register and pay VAT, so this is not a new tax. The challenge was that there were no mechanisms and tools in place. Because it was easy for evasion and tax evasion. But now that the GRA has the relevant measures in place, and they say they’ve reached out to companies like Netflix to register, I think there’s huge potential,” Timore Boi told Citi Business News. .

“They can possibly start with indirect taxes and then we go to the next level and start discussions on how to tax the income that these foreign companies have earned in Ghana. So it’s possible, but all we have need, these are tools to effectively monitor. And we hope that the current software will help to monitor transactions well,” he continued.

Meanwhile, as part of efforts to generate revenue and widen the tax net, the GRA is targeting revenue collection of GH¢2.7 billion through a ‘social media tax’.

This decision will mean that Google, Twitter, Netflix and others will be forced to comply with Ghana’s e-commerce tax.

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